Build the Business and Investment Case for TCA
The business and investment cases must be clearer and more consistent to mainstream TCA.
Community Insights
Despite years of progress, TCA’s relevance to financial performance and risk management remains under-recognized. Companies and investors often view impact assessments as compliance exercises rather than strategic tools for long-term value creation. Resource constraints, data limitations, and unclear alignment with existing frameworks also hinder adoption. Other issues and suggestions included:
- The business and financial sectors need a clear, shared language to understand TCA’s value and its relevance to risk management, reputation, and performance.
- Efforts related to sustainability or social welfare are often siloed within sustainability teams or a particular fund or portfolio. As a result, they lack leadership buy-in and cross-functional integration for enterprise-wide adoption.
- Stronger alignment between TCA and existing accounting, disclosure, and impact frameworks could ease integration and drive uptake.
- Perceived cost and complexity deter some companies from piloting TCA assessments. In addition, companies don’t perceive strong consumer demand.
- Some actors fear exposing negative externalities they aren’t ready to address.
Build the Business and Investment Case for TCA
2.1
Articulate the Business Case for TCA
Scaling TCA requires a clear, consistent, and evidence-based explanation of how it generates business and investor value. The community needs to demonstrate how TCA enhances decision-making, risk management, and value creation.
Build the Business and Investment Case for TCA
2.2
Launch TCA Business Champions Group
Building relationships with business leaders is essential to strengthening the case for TCA. A dedicated TCA Business Champions Group would engage private-sector leaders and advocate for TCA as a rigorous, strategic decision-making tool with real business benefits.
Build the Business and Investment Case for TCA
2.3
Establish TCA Pilot Projects for Value Chain Decision-making
Stakeholders recommend launching additional targeted test projects with companies and investors to demonstrate TCA’s practical value across the agrifood value chain.
Build the Business and Investment Case for TCA
2.4
Create a TCA Producer and SMEs Incentives Fund
Stakeholders emphasized that meaningful agrifood systems transformation requires direct support for those on the front lines — and at every point in the value chain, from farmers and fishers to processors, distributors, and retailers. Many producers and small and medium enterprises (SMEs) already use practices that benefit people and nature but lack the resources to measure and communicate their value. Those abilities are essential for influencing policy debates, making credible consumer-facing claims, and accessing compensation from public and private programs. A TCA Incentives Fund would expand access to TCA tools and analysis, and create opportunities for these key actors to quantify their impact and lead the agrifood system transition.
Build the Business and Investment Case for TCA
2.5
Launch a TCA Funding Screening Pilot Program
Access to finance is a major barrier for producers and SMEs working to build profitable and sustainable agrifood systems. Stakeholders noted the urgent need for more funding to accelerate this transition — with some partners calling for a tenfold increase by 2040 (Global Alliance for the Future of Food, 2023). A funding screening pilot can help investors and funders recognize both the hidden risks and unrealized opportunities within agrifood systems.
Build the Business and Investment Case for TCA
2.6
Create a TCA Investor Engagement Program
Many agrifood investors underestimate their exposure to social, health, environmental, and economic risks. At the same time, opportunities that can generate positive returns alongside social and environmental benefits are often overlooked. An investor engagement program would demonstrate how to harness TCA for investment strategies and risk management.
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